Q: In proposals, can we still offer to put their information on our sites (social media and website) if they donate alongside the 18A certificate?
Q: If you are writing articles or posting on social media about a donation, is that considered them getting something back for the donation?
donating a stand at an event or use of space for free would not qualify.
garden equipment etc. to give rise to 18A receipts. Only issuing 18As for new items is too restrictive an interpretation, and not required by SARS.
the responsibility of the organisation receiving the donation to verify that the value is the lower of the two or do investigations into how the donation will be recorded in terms of the donor’s internal accounting systems.
required by a donor system, the organisation must merely request the value of the items in writing.
head office or ‘care’ costs of developing and running your programmes/projects.
A: It is very common to charge an administration for hosting/ assisting with implementation of projects of (usually unregistered) organisations. It is also common for non-profits to sub-contract parts of projects to other non-profits. The accounting and tax treatment of the charge/cost of year participation depends on the nature of the agreements entered into:
- If your organisation is sub-granted (or a co-grantee) then the funds would be donations/grants received and would be recorded as such and non-taxable.
- If your organisation is providing and being paid a service, then the funds received would be ‘income.’ They would be trading income, but whether they are table is a more complex question.
Donations can come from various types of donors and places:
- Overseas individuals,
- overseas donor organisations,
- SA foundations/donor organisations,
- SA corporates,
- SA individuals and
Which of these need 18A receipts? Should we just issue 18A receipts to all?
Because an 18A receipt is only useful to a South African taxpayer (it doesn’t work anywhere else), you only need to issue 18A receipts to
- SA corporates and
- SA individuals
The rest need an ordinary receipt/other acknowledgment Because you have to keep special records of 18A receipts issued and their total value, it is best only to issue them when you have to.